Peoples Bancorp, Inc. (Ohio) :PEBO-US: Earnings Analysis: 2016 By the Numbers : January 31, 2017

Peoples Bancorp, Inc. (Ohio) reports financial results for the year ended December 31, 2016.

We analyze the earnings along side the following peers of Peoples Bancorp, Inc. (Ohio) – First Financial Bancorp., Park National Corporation, LCNB Corp., Old National Bancorp and Huntington Bancshares Incorporated (FFBC-US, PRK-US, LCNB-US, ONB-US and HBAN-US) that have also reported for this period.


  • Net interest income margins narrowed from 67.20% to 67.03% compared to the same period last year.
  • Net loan assets changed 7.34% compared to same period last year and 7.34% from previous period, total deposits changed -1.03% compared to same period last year and -1.03% from previous period.
  • Earnings growth from operating margin improvements as well as from one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2016 2015 2014 2013 2012
Relevant Numbers (Annual)
Revenues 156.44 145.25 109.89 93.18 93.06
Revenue Growth (YOY) N/A N/A N/A N/A N/A
Earnings 31.16 10.83 16.57 17.43 20.26
Earnings Growth (YOY) 187.69 -34.63 -4.97 -13.97 61.4
Net Margin 19.92 7.46 15.08 18.71 21.78
EPS 1.71 0.61 1.35 1.63 1.92
Return on Equity 7.29 2.85 5.9 7.87 9.46
Return on Assets 0.93 0.37 0.72 0.88 1.09

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Earnings Growth Analysis

The company’s net interest income margins showed no year-on-year improvement. In spite of this, the earnings rose, influenced primarily by the increase in net interest income after provisions margins from 57.50% to 64.77%. Loan loss provisions as a percentage of net interest income were 3.37% this period, and 14.44% a year ago.

Net Interest Income Margin Versus Loan Loss Provisions Margin

Quadrant label definitions. Hover to know more

High Risk; High Reward Loans, Risky Loan Portfolio, Conservative Loan Portfolio, Safer Loan Portfolio
Net Interest Income Margin History
Loan Loss Provisions Margin History

Net Loans and Total Deposits

A financial institution’s core operations represented by Net Interest Income and Net Interest Income after Provisions are dependent on both the growth and quality of its deposits as well as the growth and quality of its loans. A firm could boost its interest income in the short-term by just increasing its loan assets with less concern about their quality – but this would eventually lead to greater loan loss provisions. Similarly a drive to increase deposits could result in higher interest expenses and eventually effect the firm’s equity. It is thus important to understand net interest income performance in context to loan loss provisions, loan assets and deposits.

Loan Assets Growth Rate History (HY YOY)
Total Deposits Growth Rate History (HY YOY)

The firm’s decline in net interest income margins came despite the relative increase in the level of net loan assets. In addition, total deposits as a percentage of equity went from 6.04% to 5.77%. On an absolute basis, net loan assets changed 7.34% compared to the same period last year and 7.34% from the previous period. Total deposits changed -1.03% compared to the same period last year and -1.03% from the previous period.


The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating margins from 18.43% to 29.40% and (2) one-time items. The company’s pretax margins are now 28.95%, compared to 10.20% for the same period last year.

EBIT Margin History
PreTax Margin History
EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables

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Company Profile

Peoples Bancorp, Inc. is a financial holding company, which engages in the provision of diversified financial products and service. The firm firm’s products include demand deposit accounts, savings accounts, money market accounts and certificates of deposit; commercial, consumer and real estate mortgage loans; debit and automated teller machine cards. It also offers banking, investment, insurance, and trust solutions. The company was founded in 1980 and is headquartered in Marietta, OH.

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